Question

2(a). The table below shows the incomes and rates of income tax levied on four professionals in an economy (Director: income $8,000, tax rate 10%; Engineer: income $7,000, tax rate 12%; Civil Servant: income $5,000, tax rate 18%; Nurse: income $6,000, tax rate 15%). Calculate the disposable incomes of the four individuals.

Accepted Answer

Disposable income = Income − Tax.
Director: Tax=10%×8000=$800; Disposable income = 8000−800 = $7,200.
Engineer: Tax=12%×7000=$840; Disposable income = 7000−840 = $6,160.
Civil Servant: Tax=18%×5000=$900; Disposable income = 5000−900 = $4,100.
Nurse: Tax=15%×6000=$900; Disposable income = 6000−900 = $5,100.

WAEC Economics 2015 Theory — Question 2

Sign up free to unlock